Nonpublic sector still indispensable: China Daily editorial

Some recent irresponsible comments suggesting it is time for the nonpublic sector to be incorporated into the public economy have understandably spooked private entrepreneurs.

But there is no reason for them to be concerned, as the top leadership has made clear that the country will continue to support the nonpublic economy.

There is no doubt that private enterprises have been feeling the pain due to the country's ongoing economic restructuring and the US onslaught on the Chinese economy. But speaking at a meeting with private entrepreneurs on Thursday, Xi Jinping, general secretary of the Communist Party of China Central Committee, pledged that the country will help the private economy with tax cuts and financing facilitation policies. And he reiterated that the property of private entrepreneurs will be protected.

Private enterprises - which are active in most of the country's economic sectors, and account for the bulk of the country's growth, taxation and employment - have played an indispensable role in China's development, he said.

This was consistent with Xi's remarks in the report he delivered to the 19th National Congress of the CPC in October last year, when he said that the government should promote the healthy growth of the nonpublic sector of the economy, and encourage those working in this sector to achieve success.

Likewise, China's Constitution stipulates that the nonpublic sectors of the economy such as the individual and private sectors are an "important component" of the country's overall economic system, and the State has the duty to protect the lawful rights and interests of individuals and private enterprises.

This was affirmed by the Political Bureau of the CPC Central Committee at its meeting on Wednesday to analyze the economic situation, when it said that the development of enterprises of all types of ownership will be resolutely supported, and it is looking at ways to help private enterprises tackle the challenges they are facing.

It is not the first time that the Chinese economy and its private enterprises have faced harsh challenges in the reform and opening-up era. But each time the difficulties have been overcome. There is no reason to think that will not be the case this time despite the concatenation of circumstances.

The indexes show China's economic fundamentals remain sound, and the Chinese economy remains one of the most dynamic.

But to give a shot in the arm to the nonpublic sectors and bolster the confidence of entrepreneurs, the authorities should accelerate the supportive measures pledged by Xi and continue to be proactive in improving the business environment for private enterprises.